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I
am the chief editor publisher of Rimjin-gang,
Ishimaru Jiro. The Rimjin-gang team has decided
to start publishing periodic press releases containing
pertinent new information gathered by our reporters
in North Korea.
Starting with Kim Dong-cheol, there are currently
8 North Korean reporters or collaborators working
with the Rimjin-gang editorial staff to report
undercover inside the country. They take video
and talk with locals, reporting their findings
several times a week via telephone and other means
of communication. The latest information presented
below is based off these reports.
The latest situation inside North Korea provided
by Rimjin-gang reporters is that of dire conditions
both for the common people and the military. Based
on our report below, we predict that even by mid-February,
North Korea will ask the international community
for further food aid. Attention will be focused
on the worldfs response.
1. Hyperinflation;
Prices have soared 50 times from their levels
a year before, and volatility is very high.
2. Worsening food supplies to the troops;
Civilians and cadres have been ordered to supply
food to the army.
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1. Hyperinflation
We have combined information gained from multiple
Asia Press reporting partners in the Northern
regions of North Hamgyung and North Pyongan, as
well as the central regions of South Pyongan and
Pyongyang. While there are small regional pricing
differences as well as heavy volatility, at the
end of January 1 kilogram of white rice sold for
around 2000-2500 won.
Following the implementation of the November 30,
2009 currency reform (redenomination the currency
100 to 1) the price of rice was set at 44 won.
This equates to a 50-fold price increase over
a span of less than one year. We can see the heavy
toll inflation caused by the currency reform has
had on the economy.
Since prices of other goods have increased at
the same rate, and their prices in real dollar
terms have not moved that much, it is clear that
inflation is not because of a shortage of food
but rather due to the drop in the value of the
currency. At this point in time it is unclear
whether or not the authorities have increased
the issuance of currency.
Here are market prices for various goods at the
end of January (1 kilogram unts)
Corn: 900-950 won
Pork: 5,000 won
Gasoline: 5,000 won
1 USD: 2,880-3,000 won
1 RMB: 400-500 won
(won = North Korean won/KPW)
Reports from the common market in Pyongsong, South
Pyongan province reveal that it is hard for merchants
to set prices. The price of dollars and yuan on
the black market is highly volatile, causing interference
in trade and a widespread reluctance to sell.
In addition, trade in the sharply depreciating
North Korean won is coming to a halt. Demands
for payment in dollars or yuan are increasing.
The price of goods and foreign currencies have
all risen 50% since mid-December last year, so
hyperinflation continues. The prices of goods
in won are soaring, while in dollar terms they
remain basically unchanged from last year. It
is clear that there is a severe drop in the value
of the won.
According to our reporter Kim, both rice and corn
continue to be display in large quantities in
the common markets. In other words, North Korea
is not suffering from food shortages.
2. Food supplied to the army has
drastically decreased
On
the other hand, food shortages in the army are
very serious. According to a Defense Security
Command commissioned officer Kim Dong-cheol met
in North Pyongan Province, the amount of food,
principally corn, supplied to the troops is being
restricted to 300 grams/day.
"At
100 gram a meal amounts, you will suffer malnourishment
just by sitting around." Kim says that
the food supplied to the army hasnft been in
this low in the last 10 years.
The
Defense Security Command is in charge of protecting
Kim Jong-il and other important officials, so
it receives better treatment than normal combat
squads or construction teams. This officer,
an acquaintance of Kim, spoke his mind about
the lack of food: gIt is only January and the
food situation is already this bad. That means
that during the spring distress period (the
offseason running from April to August, when
there are food shortages every year) it will
be terrible.h
In
the region Kim resides, there have been directives
for the residents to supply the army rice for
free:gFrom the beginning of the year, an order
came in via the People Unit telling each family
to donate 1 kilo of food to the army. In addition,
high level cadres from the party and companies
were instructed by the central government to
unconditionally procure 500 kilos. Large scale
market businessmen are also being pressured
to provide gpatriotic riceh to the army.
Today
in North Korea, even though food is being trading
in the markets, the government is left scraping
the bottom of the barrel. Key organizations
and facilities like the army, mines, and military
supply factories are all suffering massive food
distribution problems. As we enter February,
there is a high likelihood the government will
reach out to the international community for
food aid.
(ISHIMARU Jiro/Chief Editor/Rimjin-gang)
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